General accounting Alpha Minerals will pay an annual dividend of $2.20 per sharenext year and currently sells for $50 a share based on a marketrate of return of 10.92 percent. What is the capital gains yield?A. 7.35 percentB. 7.78 percentC. 9.23 percentD. 6.52 percentE. 4.49 percent

Here's how to calculate the capital gains yield:Calculate the Dividend Yield:Dividend Yield =…

Answered: Alpha Minerals will pay an annual…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 3P

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Alpha Minerals will pay an annual dividend of $2.20 per share next year and currently sells for $50 a share based on a market rate of return of 10.92 percent. What is the capital gains yield? A. 7.35 percent B. 7.78 percent C. 9.23 percent D. 6.52 percent E. 4.49 percent